5 Highly Useful Benefits of a FINRA License in 2021

In today’s day and age, it is more than recommended to have several qualifications. Not only will this come in handy if you’re ever in the situation to change careers, but it’s extremely helpful to be knowledgeable in a wide range of topics.

For instance, a good field to be in right now is the securities industry. In America alone, the industry is one of the fastest-growing in the last couple of years, with over 17,000 broker-dealers. 

Still, before you decide whether to be a registered representative or an investment advisor, you need to identify the proper securities license for your future. For instance, in order to become a broker-dealer, you will have to take the FINRA lincesign exam.

If you don’t know already, FINRA (the Financial Industry Regulatory Authority) is the organization in charge of securities licensing and requirements. This is also the organization that writes and enforces rules that regulate broker-dealers’ activities and audits firms for compliance with the rules they create. They also make sure the market remains transparent and that investors have access to reliable educational resources.  

Additionally, anyone interested, will have to go through their exam process to get their license. Since the exam is quite extensive, it’s best to go through a preparation period and maybe attend some of their recommended courses (check out this review of FINRA series 7 courses for more details). 

But today we want to focus on the benefits of a FINRA license. After all, in a world where computer and online skills are extremely important, is it truly worth it to invest in becoming a broker-dealer?

Top 5 Benefits of a FINRA License

1: Independence in Trading

If you like trading, then a FINRA license is one of the best things you can get. For instance, a Series 7 license authorizes any graduate to sell virtually any type of individual security (from stocks to bonds, and more). Of course, there are some limitations (no commodities futures, real estate, and life insurance), but otherwise, you are free to enjoy life as a stockbroker.

This means that you can also trade as an individual (no need to go through intermediaries anymore). And, since the average size of an 1PO deal is about US $108 million, things can look pretty good for you. 

2: Finding a Great Sponsorship

Sponsorship is part of the FINRA licensing process and requires graduates to find a firm to support their debut in the securities industry. This is a fantastic opportunity for any beginner because it provides them with a launching ramp.

As a fresh graduate, you will have an operating license. However, this doesn’t mean customers will line up at the door, asking you to cover their portfolio. In fact, a broker-dealer without any previous experience is someone to be avoided. So, a sponsorship is the best way to start your new career and get some experience. It’s also a method to build your resume, so make sure to pay attention during the internship period.

It may be difficult at first, especially since the pay is not great, but it’s a fantastic learning opportunity you cannot ignore. A certified brokerage firm will teach you a lot about trading, daling with customers, and attracting new leads. Additionally, you will also learn how to use accurate data to mitigate risks and prevision outcomes.

3: A Challenging Work Environment

Whether you’re independent or working with a firm, there’s no denying that it’s difficult to get bored in this industry. Your daily tasks are not highly repetitive and you must always keep your mind active and your information up to date.

Moreover, being a broker-dealer involves a wide range of skills, such as sales, marketing, customer relations, technology usage and manipulation, and so on. So, you will be working in a fast-paced industry that has elements from all the other hot and heavy industries on the market right now. 

4: Various Career Paths

People involved in securities licensing have the chance to take the career paths that best suit their needs. For instance, you could be involved in face-to-face communication with clients (for people who enjoy human interaction), you could be managing the funds of a corporation, or you could be managing your team of stockbrokers. Of course, there’s always the option of becoming you won boss, which is why many people choose to go into the securities industry.

5: Unlimited Earning Potential

According to the Bureau of Labor Statistics, the average annual income for people workin in securities was $62,270 in 2019. Even more, the top 10% earned over $204,000! So, if you are focused and loved what you’re doing, you can go even higher. 

Key Takeways

As you can see, a FINRA license will open the path to a world where you can become your own boss, work in a dynamic & challenging environment, and earn according to your skills and dedication. 

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